10 April 2006

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Wal-Mart ASDA distribution centre workers will vote on strike after Easter

ASDA distribution centre workers in the United Kingdom may take industrial action in a few weeks time to press for collective bargaining rights and the payment of year-end bonuses. This concerns GMB members in 21 centres, who will be asked to give their union authority to declare a strike or take other action. A ballot paper will be sent out starting on the 24th of April, unless agreement on the open issues is reached before that.

In addition to the non-payment of bonuses, the GMB distribution centre workers protest against the declared introduction of radio frequency voice picking, which the union has demanded to be sent for arbitration. According to the GMB, the company wants to increase the daily pick rate at this particular warehouse from 1,100 to 1,400 boxes per person and day. Workers are concerned that this would create additional health and safety risks.

A recent case of racial discrimination in an ASDA distribution centre has added to the workers' irritation. Employees with a foreign-sounding name were asked by managers to bring proof of their right to work in the UK whereas their colleagues with British-sounding names were not. The company paid 750 GBP in compensation to every worker, but have failed to issue a public apology.

Recently, GMB reacted strongly against a Wal-Mart attempt to bribe workers in one of their distribution centres to leave their union. Earlier this year, a court in Washington, Tyne and Wear, cited ASDA for discrimination against union members. These distribution centre workers were offered a ten per cent pay rise on the condition that they give up their union membership. The company was ordered by the tribunal to pay GBP 2,500 in compensation to each of the 340 GMB members concerned.

Wal-Mart ASDA workers are organised in two UNI affiliated trade unions, GMB and British shop workers' union Usdaw.

Right now, ASDA seems to be fighting a losing battle for the second place in British retailing. Trailing market leader Tesco by far, ASDA Wal-Mart has seen Sainsbury's closing up through its much faster growth rate. The nervousness in Wal-Mart's Bentonville headquarters has been shown by CEO Lee Scott's repeated calls for a British government intervention against Tesco's strong market presence. What Mr Scott prefers not to talk about is his own company's dominant position in global retailing.